BUSINESS – BuzzContenthttp://buzzcontent.co
BuzzContent, Content Marketing Trends, Insight, News, AnalysesThu, 21 Mar 2019 17:36:29 +0000en-UShourly1https://wordpress.org/?v=5.0.4155496339CBI and TUC unite again to demand Brexit ‘Plan B’ | Business Newshttp://buzzcontent.co/cbi-and-tuc-unite-again-to-demand-brexit-plan-b-business-news/
http://buzzcontent.co/cbi-and-tuc-unite-again-to-demand-brexit-plan-b-business-news/#respondThu, 21 Mar 2019 13:21:41 +0000http://buzzcontent.co/cbi-and-tuc-unite-again-to-demand-brexit-plan-b-business-news/Theresa May is facing demands to change course over Brexit from the CBI and TUC as she pleads for a ‘Brextension’ in Brussels. The business lobby group and union organisation, which first united in 2017 over the Brexit implications for citizens’ rights, joined forces again on Thursday in a letter to the prime minister. Their […]]]>

Theresa May is facing demands to change course over Brexit from the CBI and TUC as she pleads for a ‘Brextension’ in Brussels.

The business lobby group and union organisation, which first united in 2017 over the Brexit implications for citizens’ rights, joined forces again on Thursday in a letter to the prime minister.

Their respective leaders – Carolyn Fairbairn at the CBI and the TUC’s Frances O’Grady – wrote that while the need for an extension beyond the current deadline of 29 March for a deal had become “essential”, it was “paramount” for the country that a no-deal scenario was avoided.

Crucially, the letter called for a “Plan B”.

It said that the ‘current deal or no-deal’ approach must not be the only choice.

“A Plan B must be found – one that protects workers, the economy and an open Irish border, commands a parliamentary majority, and is negotiable with the EU,” the letter said.

“A new approach is needed to secure this – whether through indicative votes or another mechanism for compromise.

“We cannot overstate the gravity of this crisis for firms and working people.

“We request an urgent meeting with you to discuss our concerns and hear your response.”

More follows…

]]>http://buzzcontent.co/cbi-and-tuc-unite-again-to-demand-brexit-plan-b-business-news/feed/013113Steel group Meridian in last-ditch talks to avert collapse | Business Newshttp://buzzcontent.co/steel-group-meridian-in-last-ditch-talks-to-avert-collapse-business-news/
http://buzzcontent.co/steel-group-meridian-in-last-ditch-talks-to-avert-collapse-business-news/#respondThu, 21 Mar 2019 11:38:31 +0000http://buzzcontent.co/steel-group-meridian-in-last-ditch-talks-to-avert-collapse-business-news/By Mark Kleinman, City editor One of Britain’s biggest steel stockholding businesses is in last-ditch talks to avoid collapse just days after MPs accused the Government of neglecting the wider steel industry. Sky News has learnt that Meridian Metal Trading, which employs about 170 people, could appoint administrators on Friday as emergency talks with prospective […]]]>

By Mark Kleinman, City editor

One of Britain’s biggest steel stockholding businesses is in last-ditch talks to avoid collapse just days after MPs accused the Government of neglecting the wider steel industry.

Sky News has learnt that Meridian Metal Trading, which employs about 170 people, could appoint administrators on Friday as emergency talks with prospective buyers go to the wire.

Sources said the company, which is based in Dudley in the West Midlands, had been in discussions with prospective investors for several weeks.

In the last fortnight, Meridian has filed two notices of intention to appoint administrators amid talks with Duferco, an industrial conglomerate with a significant presence in the global steel market.

The talks with Duferco have now cooled, and a solvent sale looked unlikely ahead of the expiry of Meridian’s second insolvency notice at midnight on Thursday, according to insiders.

Duff & Phelps, the professional services firm which handled the insolvency of BHS, has been advising Meridian’s board on the process and would handle any administration process.

Even without a solvent sale, a pre-pack administration which salvages many of Meridian’s jobs remains a realistic possibility, the sources added.

Meridian has faced growing pressure on its business amid difficult conditions in international steel markets and a backdrop of escalating trade tensions.

In its accounts for the year 31 May 2017, the company said it “faces pressure in respect of a struggling global steel market”.

Its accounts for the year to 31 May 2018 are almost a month overdue, according to Companies House.

This week, a damning report by MPs on the Business, Energy and Industrial Strategy select committee blamed the Government for failing to deliver a sector deal for the steel industry.

Rachel Reeves MP, the committee chair, said: “On steel, the Government should get back to the table and talk to the industry to get a sector deal done.

“Having made the steel industry jump through hoops in efforts to get a deal, the Government should now deliver on its side of the bargain.”

Founded in 1987, Meridian’s largest creditor is understood to be Secure Trust Bank, which was reported nearly a year ago to have agreed a £35m borrowing facility with the company.

Meridian could not be reached for comment, while Duff & Phelps declined to comment.

]]>http://buzzcontent.co/steel-group-meridian-in-last-ditch-talks-to-avert-collapse-business-news/feed/013104Pre-Brexit cheer for Hammond and UK economy from latest data | Business Newshttp://buzzcontent.co/pre-brexit-cheer-for-hammond-and-uk-economy-from-latest-data-business-news/
http://buzzcontent.co/pre-brexit-cheer-for-hammond-and-uk-economy-from-latest-data-business-news/#respondThu, 21 Mar 2019 11:31:47 +0000http://buzzcontent.co/pre-brexit-cheer-for-hammond-and-uk-economy-from-latest-data-business-news/By Ed Conway, economics editor The UK economy provided some unexpected positive news today as high street sales grew by more than anticipated and the public finances continued to outperform. The volume of products bought by British consumers rose by 0.4% in February. Analysts had expected a 0.4% contraction. The positive performance suggests the wider […]]]>

By Ed Conway, economics editor

The UK economy provided some unexpected positive news today as high street sales grew by more than anticipated and the public finances continued to outperform.

The volume of products bought by British consumers rose by 0.4% in February.

Analysts had expected a 0.4% contraction.

The positive performance suggests the wider economy is likely to grow faster than expected in the first quarter of the year.

Image:The high street had a poor Christmas but has seen business accelerate since

The Office for National Statistics (ONS) also revealed that government borrowing had dropped to its lowest level in 17 years this financial year, as tax revenues continue to come in above expectations.

It reported public sector net borrowing of £200m in February, £1bn less than in February 2018.

It meant the total deficit so far this financial year (since last April) was £23.1bn – a sizeable £18bn fall compared with the same period last year.

The reduction in the deficit comes the week after chancellor Philip Hammond pledged in his Spring Statement to end austerity provided the Prime Minister manages to pass her Brexit deal next week.

However the ONS also announced that for the first time since comparable records began, financial firms had cut back their total net investment with net disinvestment of £34bn in the fourth quarter of 2018 – the lowest figure on record.

]]>http://buzzcontent.co/pre-brexit-cheer-for-hammond-and-uk-economy-from-latest-data-business-news/feed/013103Next could see £15m no-deal tariff boost | Business Newshttp://buzzcontent.co/next-could-see-15m-no-deal-tariff-boost-business-news/
http://buzzcontent.co/next-could-see-15m-no-deal-tariff-boost-business-news/#respondThu, 21 Mar 2019 07:36:03 +0000http://buzzcontent.co/next-could-see-15m-no-deal-tariff-boost-business-news/Fashion retailer Next says a no-deal Brexit could save it up to £15m thanks to lower tariffs and it would pass on the savings to shoppers. The fashion retailer also said consumers appeared “numb” to the latest debates around Britain’s departure from the EU and there was no evidence that uncertainty around it was affecting […]]]>

Fashion retailer Next says a no-deal Brexit could save it up to £15m thanks to lower tariffs and it would pass on the savings to shoppers.

The fashion retailer also said consumers appeared “numb” to the latest debates around Britain’s departure from the EU and there was no evidence that uncertainty around it was affecting their shopping habits in the sector.

More follows…

]]>http://buzzcontent.co/next-could-see-15m-no-deal-tariff-boost-business-news/feed/013088More than 100 shop staff attacked daily, as knives becomes ‘significant concern’ for retailers | UK Newshttp://buzzcontent.co/more-than-100-shop-staff-attacked-daily-as-knives-becomes-significant-concern-for-retailers-uk-news/
http://buzzcontent.co/more-than-100-shop-staff-attacked-daily-as-knives-becomes-significant-concern-for-retailers-uk-news/#respondThu, 21 Mar 2019 03:59:54 +0000http://buzzcontent.co/more-than-100-shop-staff-attacked-daily-as-knives-becomes-significant-concern-for-retailers-uk-news/By Sanya Burgess, news reporter Knife crime is a “significant concern” retail businesses say, as it is revealed that 115 shop employees are attacked at work every day. The British Retail Consortium’s (BRC) annual Retail Crime Survey found that knives “are seen as the most significant type of weapon” used in these attacks. The survey […]]]>

By Sanya Burgess, news reporter

Knife crime is a “significant concern” retail businesses say, as it is revealed that 115 shop employees are attacked at work every day.

The British Retail Consortium’s (BRC) annual Retail Crime Survey found that knives “are seen as the most significant type of weapon” used in these attacks.

The survey recorded more than 42,000 violent incidents involving retail workers, noting that weapons are being used for both high and low value thefts.

Helen Dickinson, chief executive of the British retail consortium, writes in the foreword of the report: “Violence against employees is one of the most pressing issues retailers face, and yet again we have seen in increase in the overall number of incidents… incidents are becoming more severe, with weapons, particularly knives, posting a more significant threat than before.”

The report states the total cost of crime and crime prevention for retailers was £1.9bn last year, up 12% from the previous year (£1.7bn). This figure is equivalent to around 20% of the estimated profits of the entire retail industry.

Investment in preventing crime made up £1bn of this figure, while £900m is lost as a direct cost of retail crime.

Ms Dickinson has called on the police to do more to tackle violence against retail employees and for Parliament to “play it’s part”.

She said: “No one should go to work fearing threats and abuse… We hope this report will act as a catalyst for police and crime commissioners around the country to take action.

“Retail crime should be explicitly addressed by police and crime plans.

“Furthermore, parliament must play its part in stemming this tide of crime by creating a specific criminal offence to protect retail employees from assault at work, as has been done for emergency workers.”

Paddy Lillis, general secretary for the Union of Shop, Distributive and Allied Workers, said: “It is time for the government to act by providing stiffer penalties for those who assault workers.”

Additionally, the report found nearly 80% of the retailers surveyed have seen an increase in the number of cyber attacks.

The BRC Retail Crime Survey covers the period from 1st April 2017 to 31st March 2018 and includes the responses of surveys who collectively control 11,000 stores and £103 billion of turnover, equivalent to just under one-third of the retail market.

]]>http://buzzcontent.co/more-than-100-shop-staff-attacked-daily-as-knives-becomes-significant-concern-for-retailers-uk-news/feed/013082Why consortium circling Inmarsat may wish to take it private | Business Newshttp://buzzcontent.co/why-consortium-circling-inmarsat-may-wish-to-take-it-private-business-news/
http://buzzcontent.co/why-consortium-circling-inmarsat-may-wish-to-take-it-private-business-news/#respondThu, 21 Mar 2019 03:54:31 +0000http://buzzcontent.co/why-consortium-circling-inmarsat-may-wish-to-take-it-private-business-news/It’s a wonder that the management at Inmarsat ever have any time to focus on their day job. The satellite operator, a former member of the FTSE 100, has had no fewer than three takeover approaches during the last nine months and seems to spend much of its time being discussed as a target. The […]]]>

It’s a wonder that the management at Inmarsat ever have any time to focus on their day job.

The satellite operator, a former member of the FTSE 100, has had no fewer than three takeover approaches during the last nine months and seems to spend much of its time being discussed as a target.

The first, in June last year, saw Inmarsat rebuff an approach from Echostar, the US satellite operator, on the grounds that it “very significantly undervalued” the company and its prospects.

The size of that approach was never disclosed, but Inmarsat’s stock market value at the time was £2.2bn.

It briefly flushed out interest from Eutelsat, the French satellite operator, but that too came to nothing.

Image:Inmarsat owns and operates 13 satellites which offer services including broadband and safety systems for the aviation and shipping sectors

Now the company, which employs 1,500 people and which is based on the corner of London’s Silicon Roundabout to the north of the City, is facing a third takeover approach.

This one comes from a consortium made up of the private equity firms Apax Partners and Warburg Pincus and two Canadian pension funds – the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan Board.

The approach values the company at £2.5bn and news of it sent shares of Inmarsat up 57.5p to 495.3p – after they briefly hit 510p at one stage.

That share price movement gives an indication that shareholders are not getting too excited just now.

Inmarsat shares are valued in the approach at $7.21 (543p) each but, were investors convinced an offer was likely to materialise, they would surely be higher.

As things stand, with the two sides only at the discussion stage just now, they are trading at a significant discount to the proposed offer.

And, even after Wednesday’s surge, the shares are only back to levels seen last October.

They touched 632p at the height of the excitement over Echostar’s approach last June while the all-time high, at the end of 2015, was 1153p.

Things were a lot different for Inmarsat back then.

The company was riding high in the FTSE 100 (it departed the following June) and there was much excitement about the position it was building as the world’s only global high-speed broadband operation.

Since then, some investors have fallen out of love with the stock, reflecting the loss of its monopoly in enabling global maritime distress signals.

The profitability of that division, which still generates half of Inmarsat’s earnings, was also eroded by a downturn in global shipping activity.

Another threat to profits emerged when it became clear payments to Inmarsat from Ligado, a US satellite operator that leased spectrum from the UK company, were set to dry up.

Competition in satellite broadband, meanwhile, is intensifying not only from long-standing rivals such as California-based Viasat but also from the likes of OneWeb, which is backed by Sir Richard Branson and by Softbank, the deep-pocketed Japanese investment firm.

Adding to those concerns among investors was a dawning realisation that Inmarsat faced big investment costs during coming years as it builds a network providing in-flight broadband connectivity to the world’s airlines.

The Echostar approach followed and, although it was rebuffed, Echostar has gone on to build a 3% stake in Inmarsat, making it the company’s 11th-biggest shareholder, while also snapping up some of its bonds. It will be watching with interest here.

There is reason to think, though, that the consortium, which has until 16 April to table a firm offer, may get further than Echostar did.

For a start, there is the fact that Apax previously owned Inmarsat after buying it, for £900m, in October 2003 in partnership with Permira, another private equity firm.

The pair went on to float Inmarsat on the stock market in June 2005 – when it was valued at £1.2bn – but retained a stake for some time after that.

Moreover, the consortium is offering cash, whereas Echostar’s offer last year was partly in its own shares.

Meanwhile, Andy Sukawaty, Inmarsat’s non-executive chairman and its former chief executive, is a former adviser to both Apax and Warburg Pincus, suggesting negotiations may be more cordial than those which took place last year.

The drift in Inmarsat’s share price since it saw off Echostar last year may also mean some shareholders are more comfortable about accepting an offer that is probably more valuable than the sum the Americans offered last summer.

This is a business that, while having excellent long-term prospects, faces a number of challenges in the short term and which may therefore be better off in private hands.

Yet, should it be taken private, there will also be a sense of disappointment.

This is a unique company and Inmarsat’s stock market investors will not easily be able to obtain exposure to anything similar if it goes.

]]>http://buzzcontent.co/why-consortium-circling-inmarsat-may-wish-to-take-it-private-business-news/feed/013080Small firms have ‘no resources’ for no-deal Brexit planning | Business Newshttp://buzzcontent.co/small-firms-have-no-resources-for-no-deal-brexit-planning-business-news/
http://buzzcontent.co/small-firms-have-no-resources-for-no-deal-brexit-planning-business-news/#respondThu, 21 Mar 2019 03:47:57 +0000http://buzzcontent.co/small-firms-have-no-resources-for-no-deal-brexit-planning-business-news/By Charlotte Lomas, Sky correspondent Small businesses are resigned to whatever happens with Brexit as they do not have the resources to plan for a no-deal scenario, according to the Federation of Small Businesses. The organisation has told Sky News that many are finding it impossible to made decisions ahead of a week’s time when […]]]>

By Charlotte Lomas, Sky correspondent

Small businesses are resigned to whatever happens with Brexit as they do not have the resources to plan for a no-deal scenario, according to the Federation of Small Businesses.

The organisation has told Sky News that many are finding it impossible to made decisions ahead of a week’s time when the UK could be leaving the EU if the prime minister’s efforts to agree an extension to the current 29 March deadline fail.

Alan Soady, from the FSB, said: “A lot of small businesses don’t have the kind of resources, and specialist teams to do contingency planning.

“They don’t have the money or expertise. That’s why many have found it so difficult to plan, and prepare for the possibility of an unplanned no deal.

“For the ‘Just in Time’ sectors, like florists, where stockpiling isn’t relevant, it’s making it really hard to plan.”

Image:Spare capacity in the UK’s warehouses is said to be scarce as 29 March looms

At Sandy’s fishmongers in Twickenham, south west London, owner Stuart Sandy said it is a worrying time for the business as it relies on daily deliveries -many from Europe.

“Stockpiling just isn’t an option for us, we need the continuation of supply and if there’s disruption then we are in trouble,” he said.

“We are in the hands of the gods. We are trying to stockpile some frozen stocks but the fresh produce, that is out of our control.”

Mr Sandy said he has tried to get answers from his suppliers and wholesalers but they have no answers either.

He added: “Nobody can predict what is going to happen.

“The government always says small businesses are the backbone of the UK economy but that backbone needs more support.

“It’s OK when you know the problem and can work around it logistically. If you don’t know what the problem is, it’s like being asked to put together a puzzle that is plain white.

“We don’t know what picture we are producing.”

The continued uncertainty surrounding Brexit and the possibility of leaving the EU without a deal is also impacting consumer behaviour.

Image:There is growing evidence that consumers are preparing ‘Brexit boxes’ of essentials in case of no-deal disruption to supplies

Research carried out by Global Data, a leading analytics company, shows 10% of people are stockpiling goods and a further 15% intend to do so.

Research Director at Global Data, Patrick O’Brien said: “It’s that whole level of uncertainty with consumers, they don’t know about what’s happening and when.

“Around 10% of consumers say they’ve done some level of stockpiling and we found two things driving this – one is concern about price rises and the other is availability in stores.

“But it is rising prices that is the more dominant of the two at the moment.”

Image:Morrisons has reported early evidence of panic buying for essentials such as loo rolls

Among the items people are reportedly stockpiling is toilet roll, as most is imported into the UK, and also dried and tinned goods.

“In the most extreme cases shoppers are buying bottled water in bulk in the worry that chemicals used to treat water won’t be available.

There have been warnings, including from leading economists, against panic buying.

Former Bank of England deputy governor Sir Charlie Bean, who is now a committee member at the Office for Budget Responsibility, told MPs this week it would be this behaviour and not Brexit that could lead to food shortages.

He said: “It’s like a bank run. It makes things worse as everybody is trying to stockpile the commodities because they think they might run out and it’s that which creates the shortages.

“That is a scenario that might quite legitimately kick in because people think there’s a cliff edge around the corner.”

]]>http://buzzcontent.co/small-firms-have-no-resources-for-no-deal-brexit-planning-business-news/feed/013078Fed sees no US interest rate rise this year as economy slowshttp://buzzcontent.co/fed-sees-no-us-interest-rate-rise-this-year-as-economy-slows/
http://buzzcontent.co/fed-sees-no-us-interest-rate-rise-this-year-as-economy-slows/#respondWed, 20 Mar 2019 18:13:11 +0000https://buzzcontent.co/fed-sees-no-us-interest-rate-rise-this-year-as-economy-slows/The US Federal Reserve has signalled there will be no interest rate hikes in 2019, citing a slowdown in economic growth.]]>

The US Federal Reserve has signalled there will be no interest rate hikes in 2019, citing a slowdown in economic growth.

]]>http://buzzcontent.co/fed-sees-no-us-interest-rate-rise-this-year-as-economy-slows/feed/013058Toyota to build new model for Suzuki at UK plant | Business Newshttp://buzzcontent.co/toyota-to-build-new-model-for-suzuki-at-uk-plant-business-news/
http://buzzcontent.co/toyota-to-build-new-model-for-suzuki-at-uk-plant-business-news/#respondWed, 20 Mar 2019 12:57:44 +0000http://buzzcontent.co/toyota-to-build-new-model-for-suzuki-at-uk-plant-business-news/By John-Paul Ford Rojas, business reporter Toyota is to begin producing a new model in the UK late next year in a rare boost for Britain’s beleaguered car industry. The Japanese car maker will make hybrid electric vehicles on behalf of Suzuki at its Burnaston plant in Derbyshire, with engines from its Deeside site in […]]]>

By John-Paul Ford Rojas, business reporter

Toyota is to begin producing a new model in the UK late next year in a rare boost for Britain’s beleaguered car industry.

The Japanese car maker will make hybrid electric vehicles on behalf of Suzuki at its Burnaston plant in Derbyshire, with engines from its Deeside site in north Wales.

It will not lead to any more jobs or investments but will increase the utilisation rate at Toyota’s car factory, providing reassurance at a time when worries including Brexit hang over the sector.

“Seeking to produce additional volume for other customers is one example of all the efforts we are making to keep our UK manufacturing operations as competitive as they can be.”

The car maker’s announcement – which was first reported by the Financial Times – did not alter its previously-stated concerns about Brexit.

Image:TMUK managing director Marvin Cooke said continued free and frictionless trade was essential

Mr Cooke said: “We have consistently said for the medium to longer term, continued free and frictionless trade and common automotive technical standards will be essential to support the international competitiveness of the UK automotive sector.”

Toyota, like other British manufacturers, is worried about the impact a no-deal Brexit could have on its use of “just in time” supply chains.

Tony Walker, deputy managing director at Toyota Motor Europe, told MPs last December that such a scenario would be “disastrous” and could result in months of “stop-start” production.

Toyota employs 3,200 people at its Burnaston and Deeside plants and two years ago invested £240m to upgrade the Burnaston site to produce the new Corolla.

The new Suzuki model it is to produce will be based on its Corolla Wagon.

It is part of a wider global collaboration between the two Japanese car makers announced earlier on Wednesday which will also see Suzuki produce compact models for Toyota in India.

The UK announcement comes after Sky News revealed that Honda was to close its plant in Swindon and that Nissan has scrapped plans to build a new X-Trail model in Sunderland.

Meanwhile, Jaguar Land Rover said earlier this year that it planned to cut 4,500 jobs.

The industry has been faced with a cocktail of challenges including a global economic slowdown and in particular plunging demand from China, as well as changes to emissions rules and a collapse in sales of diesel vehicles – compounded by uncertainty over Brexit.

]]>http://buzzcontent.co/toyota-to-build-new-model-for-suzuki-at-uk-plant-business-news/feed/013031Lloyds scraps buyout bosses’ bonuses after NEC bonanza | Business Newshttp://buzzcontent.co/lloyds-scraps-buyout-bosses-bonuses-after-nec-bonanza-business-news/
http://buzzcontent.co/lloyds-scraps-buyout-bosses-bonuses-after-nec-bonanza-business-news/#respondWed, 20 Mar 2019 11:37:54 +0000https://buzzcontent.co/lloyds-scraps-buyout-bosses-bonuses-after-nec-bonanza-business-news/By Mark Kleinman, City editor Lloyds Banking Group has axed a lucrative pay scheme for its private equity bosses following huge windfalls triggered by the controversial sale of Birmingham’s NEC exhibition venue. Sky News can reveal that Lloyds’ board has scrapped a deal-by-deal compensation structure for managers at LDC, one of the UK’s most active […]]]>

By Mark Kleinman, City editor

Lloyds Banking Group has axed a lucrative pay scheme for its private equity bosses following huge windfalls triggered by the controversial sale of Birmingham’s NEC exhibition venue.

Sky News can reveal that Lloyds’ board has scrapped a deal-by-deal compensation structure for managers at LDC, one of the UK’s most active private equity investors.

The decision to abolish a co-investment scheme comes months after LDC’s top two executives – chief executive Martin Draper and chief portfolio officer Chris Hurley – shared a combined windfall said to have been worth more than £40m from the NEC Group sale to Blackstone.

The deal, which valued the entertainment complex at more than £800m, came just three years after LDC bought it from Birmingham City Council for just £307m.

LDC is a shareholder in some of the UK’s best-known businesses, including Sir Terence Conran’s restaurants group, the Rush chain of hair and beauty salons and the Seabrook snacks brand.

It has also backed Fever-Tree, the phenomenally successful mixers producer, and the now-defunct Manor Formula One team.

Under LDC’s previous pay arrangements, executives benefited from a standardised private equity carried interest scheme, but saw their awards augmented through a deal-by-deal co-investment plan which paved the way for lavish windfalls.

Image:The sale of the NEC, home to events such as dog show Crufts, resulted in windfalls for top executives

The latter part of the structure has now been scrapped, meaning that overall payout levels have been sharply reduced, according to people briefed on the details.

Managers and other employees at LDC were informed about the changes in recent weeks.

Sources said that Lloyds had begun a review of LDC’s pay structures last May, before the NEC had been sold but at a time when the board of Britain’s biggest high street bank had already become aware of the prospect of massive payouts to Mr Draper and Mr Hurley.

Lloyds’ directors then signed off the overhaul in November, just weeks after the NEC was sold.

The fact that the issue was debated and resolved in the Lloyds boardroom reflects a growing sense of embarrassment among some of the bank’s directors about the windfalls, one source said.

The payouts for Mr Draper and Mr Hurley for the NEC deal represented a multiple of the annual remuneration packages handed to Antonio Horta-Osorio, Lloyds’ chief executive, during his eight years running the bank.

This week, Lloyds said that Mr Horta-Osorio had offered to relinquish his right to a pension linked to his final salary following criticism from staff and investors.

LDC’s pay arrangements have also been a bone of contention within the private equity sector for many years, particularly during the eight-year period when Lloyds was partly owned by British taxpayers.

Lloyds has frequently been tipped to sell LDC, but insists that its policy of backing medium-sized UK-based companies means it fits well with the bank’s broader strategy of ‘helping Britain prosper’.

The precise size of the windfalls awarded as a result of the NEC sale have not been disclosed, although insiders suggest that the likely overall figure was in excess of £100m.

The disposal represented the biggest exit in LDC’s history, and raised awkward questions about the judgement of Birmingham City Council when it agreed to sell the NEC for just over £300m.

While the company has been transformed in recent years by a series of acquisitions, significant capital spending and performance improvements, the gulf in value between the two transactions was nevertheless a stark one.

At the time of the NEC auction process, LDC said that “like all private equity firms, our team invests in the companies we back, alongside our funding partner Lloyds Banking Group and the management teams we support”.

It declined to comment this week on the details of its amended pay arrangements but said: “LDC’s remuneration structure and incentive schemes are in line with the private equity industry.”